Category: Philosophy

A Little Optimism Goes a Long Way


(p. B1) Far from deforming our view of the future, this penchant for life’s silver lining shapes our decisions about family, health, work and finances in surprisingly prudent ways, concluded economists at Duke University in a new study published in the Journal of Financial Economics. “Economists have focused on optimism as a miscalibration, as a distorted view of the future,” said Duke finance scholar David T. Robinson. “A little bit of optimism is associated with a lot of positive economic choices.”
. . .
Optimists, the Duke finance scholars discovered, worked longer hours every week, expected to retire later in life, were less likely to smoke and, when they divorced, were more likely to remarry. They also saved more, had more of their wealth in liquid assets, invested more in individual stocks and paid credit-card bills more promptly.
Yet those who saw the future too brightly — people who in the survey overestimated their own likely lifespan by 20 years or more — behaved in just the opposite way, the researchers discovered.
Rather than save, they squandered. They postponed bill-paying. Instead of taking the long view, they barely looked past tomorrow. Statistically, they were more likely to be day traders. “Optimism is a little like red wine,” said Duke finance professor and study co-author Manju Puri. “In moderation, it is good for you; but no one would suggest you drink two bottles a day.”



For the full story, see:
Robert Lee Hotz. “Science Journal; Except in One Career, Our Brains Seem Built for Optimism.” Wall Street Journal (Fri., Nov. 9, 2007): B1.
(Note: ellipsis added.)

“Working Families in France Want to Be Richer”

(p. 1)  In proposing a tax-cut law last week, Finance Minister Christine Lagarde bluntly advised the French people to abandon their “old national habit.”

“France is a country that thinks,” she told the National Assembly. “There is hardly an ideology that we haven’t turned into a theory. We have in our libraries enough to talk about for centuries to come. This is why I would like to tell you: Enough thinking, already. Roll up your sleeves.”

Citing Alexis de Tocqueville’s “Democracy in America,” she said the French should work harder, earn more and be rewarded with lower taxes if they get rich.

. . .

(p. 9)  The government’s call to work is crucial to its ambitious campaign to revitalize the French economy by increasing both employment and consumer buying power. Somehow Mr. Sarkozy and his team hope to persuade the French that it is in their interest to abandon what some commentators call a nationwide “laziness” and to work longer and harder, and maybe even get rich.

France’s legally mandated 35-hour work week gives workers a lot of leisure time but not necessarily the means to enjoy it. Taxes on high-wage earners are so burdensome that hordes have fled abroad. (Mr. Sarkozy cites the case of one of his stepdaughters, who works in an investment-banking firm in London.)

In her National Assembly speech, Ms. Lagarde said that there should be no shame in personal wealth and that the country needed tax breaks to lure the rich back.

. . .

“We are seeing an important cultural change,” said Eric Chaney, chief economist for Europe for Morgan Stanley. “Working families in France want to be richer. Wealth is no longer a taboo. There’s a strong sentiment in France that people think prices are too high and need more money. It’s not a question of thinking or not thinking.”  

 

For the full story, see: 

ELAINE SCIOLINO.  "New Leaders Say Pensive French Think Too Much."  The New York Times, Section 1  (Sun., July 22, 2007):  1 & 9.

(Note:  ellipses added.)

 

  I used to have a photo at the top of Sarokozy running; in contrast to this picture of Mitterrand walking.  Source of photo:  online version of the NYT article cited above.

 

“People Giddy on Hope and Thrilled to Be Changing”

 

   "Emily Prager at her lane house in Shanghai."  Source of caption and photo:  online version of the NYT article quoted and cited below.   

 

The centers of dynamism are not set in stone.  I once asked the philosopher Alan Donagan why the Scottish enlightenment had occurred where (Edinburgh) and when (in the mid-late 18th century) it did.  With his usual good humor he told me that I was asking a bad question–that my question assumed that enlightenments were determined.  He instead believed that they were chance occurrences resulting from the free-will choices of individuals.

I think that there was something to what he said.  But I also believe that some institutions, and some policies of government, can greatly increase the probability that fruitful dynamism will occur.  For instance, free markets tend to tolerate diversity and experimentation, and to reward initiative. 

In the past, locations of economic dynamism, also were often locations of intellectual dynamism.  I wonder if the connection is still true today, and if not, why not? 

Among past centers of dynamism were Miletus, Athens, Florence, Amsterdam, Edinburgh, and New York City.  Today, centers of economic dynamism include Las Vegas, Dubai and Shanghai.  The article quoted below paints a generally appealing picture of Shanghai.

 

(p. D1)  I decided to move myself and my 12-year-old daughter, Lulu — whom I had adopted as a baby in China — from the old capital of the world to the new: to make a home in Shanghai, a city of the future.

I knew something about Shanghai, having been here on trips several times in the last few years. The city was always so excited it could hardly contain itself. It is a microcosm of the Asian boom, stuffed with people giddy on hope and thrilled to be changing. It recalls the greatness of New York in the early ’70s, except for one thing: Like the rest of China, Shanghai was largely closed to the outside world, and real economic growth, for nearly 50 years after World War II. It is a place where every car on the road is brand new and every pet recently acquired, but the person you just met might trace his family back 70 generations. The modernity and polish that Manhattan learned between 1945 and 1995, Shanghai is cramming for as fast as it can, and it’s fascinating to watch.

. . .

(p. D6)  Pets are new to Chinese people and they don’t know very much about them. Dogs are not neutered and they are walked without leashes. Many people are terrified of dogs, particularly given the country’s serious rabies problem.

Twice when I was walking Skippy, young women caught sight of him and screamed in terror at the top of their lungs. Because having a pet is so new, there is a video showing how to pick up after a dog and wash his paws after his walk, which appears many times a day on a huge video screen on Huaihai, the city’s other main shopping street.

 

For the full story, see: 

EMILY PRAGER. "At Home Abroad; Settling Down in a City in Motion."  The New York Times  (Thurs., July 19, 2007):  D1 & D6. 

(Note:  ellipsis added.)

 

   "On the streets of Shanghai, the author’s injured foot attracts less attention than her pet dog, still a rare sight in the city."  Source of caption and photo:  online version of the NYT article quoted and cited above.

 

Nozick (and Bush) Think it is Fair for You to Keep More of What You Earn

 

   Source of table:  online version of the NYT commentary quoted and cited below.

 

(p. 4)  DO the rich pay their fair share in taxes? This is likely to become a defining question during the presidential campaign.

. . .

Fairness is not an economic concept. If you want to talk fairness, you have to leave the department of economics and head over to philosophy.

. . .  

In his 1974 book, “Anarchy, State, and Utopia,” Professor Nozick wrote: “We are not in the position of children who have been given portions of pie by someone who now makes last-minute adjustments to rectify careless cutting. There is no central distribution, no person or group entitled to control all the resources, jointly deciding how they are to be doled out. What each person gets, he gets from others who give to him in exchange for something, or as a gift. In a free society, diverse persons control different resources, and new holdings arise out of the voluntary exchanges and actions of persons.”

To libertarians like Professor Nozick, requiring the rich to pay more just because they are rich is little more than officially sanctioned theft.

There is no easy way to bridge this philosophical divide, but the political process will, inevitably, try to forge a practical compromise among those with wildly divergent views. At the 2000 Republican National Convention, the candidate George W. Bush made clear where he stood: “On principle, no one in America should have to pay more than a third of their income to the federal government.” As judged by the C.B.O. data, he has accomplished his goal.

A question for any political candidate today is whether he or she agrees with the Bush tax ceiling. If not, how high above a third is he or she willing to go?

 

For the full commentary, see:

N. GREGORY MANKIW.  "ECONOMIC VIEW; Fair Taxes? Depends What You Mean by ‘Fair’."   The New York Times, Section 3   (Sun., July 15, 2007):  4.

(Note:  ellipses added.)

 

Omaha Government Displays Pretentious Concrete Donuts: Is Dog Poop Next?

 

  The city of Omaha is forcing its citizens to endure four concrete donuts that are sometimes called "Sounding Stones" and sometimes called "art."  Source of photo: online version of  Dane Stickney.  "ART MOVEMENT; Some neighbors don’t want sculpture in Elmwood Park."  Omaha World-Herald  (Sat., Nov. 17, 2007):  B1.

 

I believe that all art should be private art.  But if the government is going to force art on us, at least they should commission art that most find enjoyable to look at. 

Tom Wolfe in The Painted Word skewered the pretension of modern "artists" whose "art" is not intended to please, but is intended to make some obscure philosophical point. 

If somebody wants to privately finance such activity, fine.  But don’t force the rest of us to finance it through taxation.

 

 (p. 1B)  “So is this where they’re putting Stonehenge?”
  Stan Hille was walking his dog through Elmwood Park when he stopped to ask me the question. He thought I was a city employee.
  “Yes, it is,” I said as I stood near one of the gravel pads awaiting Leslie Iwai’s gigantic five-piece sculpture “Sounding Stones .” “But you don’t sound excited.”
  “Well, I guess I’m not,” he said, stopping to contemplate art.  “This thing just reminds me of that old question: ‘When is art not art?’ ” Hmm. Great question. Ancient question. I suggested it might not be art until people, especially a commission of people, tells you it’s art. Or, if it’s big, it’s art. Or, if you make something and then say there’s some meaning to it, then maybe it’s art.
  As we pondered, Hille’s dog defecated.
  “Perhaps if I can find some meaning in this poop, then maybe it’s art,” I told him as I rubbed my chin.
  The retired UNO professor and Dundee resident absorbed my genius. “Perhaps,” he responded, rubbing his chin also.
  But, alas, I could find no meaning. “Perhaps its lack of meaning is its meaning,” I then argued, sounding not unlike French philosopher Jacques Derrida. “It’s post-postmodern ironic poop.” 

. . .

 For Hille and others around Elmwood Park, the bigger question seems to be aesthetics.
  Elmwood Park is a quiet forest setting. Is this really the place for large chunks of concrete, no matter what they mean?
  “It just doesn’t seem to fit,” Hille said.
  I’m with him on that. “Sounding Stones ” might make more sense, or at least be better received, in the midst of, say, modern architecture, not nature.
  You know, perhaps put it downtown, where it could look like it fell off the old Union Pacific building.
  But if “Sounding Stones ” does end up in Elmwood Park, whichit most likely will, I’m guessing it still will end up being a positive move.
  Because, as with Hille and me, it’s going to get people thinking and talking about art.
  And even when you’re looking at dog droppings, taking time out of the day to contemplate art can’t be a completely bad thing.

 

Yes, Robert, it can be "a completely bad thing" if you have alternative uses for your time.

 

For the full commentary, see:

Robert Nelson.  "Rocky art may lead to heavy thoughts."  Omaha World-Herald  (Nov. 21, 2007):  1B.

(Note:  ellipsis added.)

 

Not All World Views Can Be Accommodated

 

   1935 photos of painted Caduveo women from Claude Lévi-Strauss Structural Anthropology.  Source of photos:  online version of the NYT article cited below.

 

I remember in a philosophy class back in the 1970s, the philosopher Stephen Toulmin mentioning that he had once attended a conference with the famed anthropologist Claude Lévi-Strauss.  For a long while Lévi-Strauss sat in silence.  Finally he stirred himself to speak, and Toulmin wondered what wisdom the great man would pronounce. 

His comment was something like:  "It is hot in here.  Will someone open a window?" 

 

News of the death of the philosopher Richard Rorty on June 8 came as I was reading about a small Brazilian tribe that the French anthropologist Claude Lévi-Strauss studied in the 1930s. A strange accident, a haphazard juxtaposition — but for a moment this pragmatist philosopher and a fading tribal culture glanced against each other, revealing something unusual about the contemporary scene.

. . .

For Mr. Rorty, the importance of democracy is that it creates a liberal society in which rival truth claims can compete and accommodate each other. His pragmatism was postmodern, tolerant to a fault, its moral and progressive conclusions never appealing to a higher authority.

. . .

The Caduveo founding myth recounts that, lacking other gifts at the moment of creation, the tribe was given the divine right to exploit and dominate others.

. . .

But there was also something else about this tribe that drew Mr. Lévi-Strauss’s attention: “It was a society remarkably adverse to feelings that we consider as being natural.” Its members disliked having children. Abortion and infanticide were so common that the only way the tribe itself could continue was by adoption, and adoption — more properly called abduction — was traditionally implemented through warfare. The tribal disdain for nature extended into its active denigration of hair, agriculture, childbirth and even, perhaps, representational art.

. . .

In reasoning one’s way into pragmatism, in minimizing the importance of natural constraints and in dismissing the notion of some larger truth, the tendency is to assume that as different as we all are, we are at least prepared to accommodate ourselves to one another. But this is not something the Caduveo would necessarily have gone along with. Mr. Rorty’s outline of what he called “the utopian possibilities of the future” doesn’t leave much room for the kind of threat the Caduveo might pose, let alone other threats, still active in the world.

One tendency of pragmatism might be to so focus on the ways in which one’s own worldview is flawed that trauma is more readily attributed to internal failure than to external challenges. In one of his last interviews Mr. Rorty recalled the events of 9/11: “When I heard the news about the twin towers, my first thought was: ‘Oh, God. Bush will use this the way Hitler used the Reichstag fire.’ ”

If that really was his first thought, it reflects a certain amount of reluctance to comprehend forces lying beyond the boundaries of his familiar world, an inability fully to imagine what confrontations over truth might look like, possibly even a resistance to stepping outside of one’s skin or mental habits.

But in this too the Caduveo example may be suggestive. As Mr. Lévi-Strauss points out, neighboring Brazilian tribes were as hierarchical as the Caduveo but lacked the tribe’s sweeping “fanaticism” in rejecting the natural world. They reached differing forms of accommodation with their surroundings. The Caduveo, refusing even to procreate, didn’t have a chance. They survive now as sedentary farmers. Such a fate of denatured inconsequence may eventually be shared by absolutist postmodernism. The Caduveo’s ideas weren’t useful, perhaps. Some weren’t even true.

 

For the full commentary, see: 

EDWARD ROTHSTEIN.  "CONNECTIONS; Postmodern Thoughts, Illuminated by the Practices of a Premodern Tribe."  The New York Times   (Mon., June 18, 2007):  B3.

(Note:  ellipses added.)

 

 RortyRichard.jpg Levi-StraussClaude.jpg   Rorty on left; Lévi-Strauss on right.  Source of photos:  online version of the NYT article cited above.

 

Business Should Stop Apologizing for Creating Wealth

 

   Source of book image:  http://hoeiboei.web-log.nl/photos/uncategorized/atlasshrugged.jpg

 

David Kelley’s op-ed piece, excerpted below, was published in the WSJ on October 10, 2007, the 50th anniversary of the publication of Ayn Rand’s greatest novel.

  

Fifty years ago today Ayn Rand published her magnum opus, "Atlas Shrugged." It’s an enduringly popular novel — all 1,168 pages of it — with some 150,000 new copies still sold each year in bookstores alone. And it’s always had a special appeal for people in business. The reasons, at least on the surface, are obvious enough.

Businessmen are favorite villains in popular media, routinely featured as polluters, crooks and murderers in network TV dramas and first-run movies, not to mention novels. Oil company CEOs are hauled before congressional committees whenever fuel prices rise, to be harangued and publicly shamed for the sin of high profits. Genuine cases of wrongdoing like Enron set off witch hunts that drag in prominent achievers like Frank Quattrone and Martha Stewart.

By contrast, the heroes in "Atlas Shrugged" are businessmen — and women. Rand imbues them with heroic, larger-than-life stature in the Romantic mold, for their courage, integrity and ability to create wealth. They are not the exploiters but the exploited: victims of parasites and predators who want to wrap the producers in regulatory chains and expropriate their wealth.

. . .  

. . .   At a crucial point in the novel, the industrialist Hank Rearden is on trial for violating an arbitrary economic regulation. Instead of apologizing for his pursuit of profit or seeking mercy on the basis of philanthropy, he says, "I work for nothing but my own profit — which I make by selling a product they need to men who are willing and able to buy it. I do not produce it for their benefit at the expense of mine, and they do not buy it for my benefit at the expense of theirs; I do not sacrifice my interests to them nor do they sacrifice theirs to me; we deal as equals by mutual consent to mutual advantage — and I am proud of every penny that I have earned in this manner…"

We will know the lesson of "Atlas Shrugged" has been learned when business people, facing accusers in Congress or the media, stand up like Rearden for their right to produce and trade freely, when they take pride in their profits and stop apologizing for creating wealth.

 

For the full commentary/review, see: 

DAVID KELLEY. "Capitalist Heroes."   The Wall Street Journal  (Weds., October 10, 2007):  A21. 

(Note:  ellipsis in Rearden quote was in original; the other two ellipses were added.)

 

Thales of Miletus Lives

 

   Source of book image:  http://store.43folders.com/books-3-1400063515-The_Black_Swan_The_Impact_of_the_Highly_Improbable

 

This is part entertaining rant and part serious epistemology.  I’ve finished 9 of 19 chapters so far–almost all of my reading time spent smiling. 

Historians of Greek philosophy used to tell the story of one of the first philosophers, Thales of Miletus, that he once was watching the stars, and fell into a well.  The citizens of Miletus made fun of him being an impractical philosopher.  To prove them wrong, he used his knowledge to corner the market in something, and made a fortune. 

Not a very plausible story, but appealing to us philosophers.  (Like Thales, we like to think we could all be rich, if we didn’t have higher goals.)

Well apparently Taleb is the real Thales.  He wanted to be a philosopher, got rich on Wall Street using his epistemological insights, and is now using his wealth to finance his musings on whatever he cares to muse on.

Beautiful!

 

Here’s an amusing sentence that broadened my grin.  (It was even more amusing, and profound, in context, but I don’t have time to type in the context for you.)

(p. 87)  If you are a researcher, you will have to publish inconsequential articles in "prestigious" publications so that others say hello to you once in a while when you run into them at conferences.

 

Reference for the book:

Taleb, Nassim Nicholas. The Black Swan: The Impact of the Highly Improbable. New York: Random House, 2007.

 

“Capitalism has Not Corrupted Our Souls; It has Improved Them”


Source of book image:  http://www.amazon.com/gp/product/0226556638/sr=8-1/qid=1153708722/ref=pd_bbs_1/104-2835260-2878345?ie=UTF8

 

Deirdre McCloskey’s unfashionable,  contrarian and compelling manifesto in favor of what she calls the bourgeois virtues starts with an uncompromising "apology" for how private property, free labor, free trade and prudent calculation are the fount of most ethical good in modern society, not a moral threat to it.

The intelligentsia — in thrall for centuries to religion and now to socialism — has for a long time snobbishly despised the bourgeoisie that practices capitalism.  Ms. McCloskey calls such people the "clerisy."  Their values and virtues, like those of the proletariat and the aristocracy, are widely admired.  But almost nobody admires the bourgeoisie.  Yet it was for anti-bourgeois ideologies, she notes, that "the twentieth century paid the butcher’s bill."

As Ms. McCloskey explains:  "Anyone who after the twentieth century still thinks that thoroughgoing socialism, nationalism, imperialism, mobilization, central planning, regulation, zoning, price controls, tax policy, labor unions, business cartels, government spending, intrusive policing, adventurism in foreign policy, faith in entangling religion and politics, or most of the other thoroughgoing nineteenth-century proposals for government action are still neat, harmless ideas for improving our lives is not paying attention."  By contrast, she argues, "capitalism has not corrupted our souls.  It has improved them."

 

For the full review, see:

MATT RIDLEY.  "Capitalism Without Tears; Fashionable thinkers sneer at the free market and its practitioners, but economic liberty may actually be a force for personal goodness."   The Wall Street Journal  (Sat., July 22, 2006):  P10.

(Note:  in the passage above, I took the liberty of correcting a misspelling of "Deirdre.") 

 

The full citation to the McCloskey book is: 

McCloskey, Deirdre N.  The Bourgeois Virtues:  Ethics for an Age of Commerce. Chicago:  University of Chicago Press, 2006.  (616 pages, $32.50)